At YC's Demo Day in March, one investor told Rich that it "used
to be a can't-miss event, but that's not so anymore. It's a
different vibe. Some major investors are starting to skip it."

One investor said that it used to be a "feeding frenzy," but
that's just not the case anymore.

Another common complaint Rich heard was that the entrepreneurs
are too powerful. Since YC has created a standard investment
contract, investors can't easily take advantage of a first-time
founder's naivety.

But YC founder Paul Graham isn't fazed by those criticisms. If
anything, it's a testament to the success he's helped young
startups attain. Graham says there are two things people complain
about that are actually compliments to YC.

The first is that YC startups are overvalued.

"The only way for a company to be overvalued is if there’s
someone willing to pay that price," Graham told the NYT. "So what
they’re saying is: Going through Y.C. causes companies to raise
money on better terms than they would have otherwise. We wouldn’t
have the barefacedness to make that claim ourselves!"

Another common complaint, Graham says, is that investors can't
easily determine which startups are good.